Charge Cards - Do they build Credit?

osmononame

Hey,

I have just started using credit cards at the age of 27 as I was severely lacking a substantial credit history and wanted to build one up. Over the past 1-2 months I have got a Clydesdale Bank Gold Mastercard (limit £5000), Halifax Clarity (limit £6000) and also an American Express Platinum Charge Card.

So my aim is to build up my credit rating over the next few years. I have a few questions:

1) Even though I can comfortably pay off the balances of the credit cards each month - should I leave a bit of debt on the credit cards each month to show that I can "manage debt"?

2) What is the best way to increase my limits? (as I know one of the criteria they lok at is the ratio of debt vs available credit) Should I use both my credit cards equally or just concentrate on 1 credit card? Maybe alternate them monthly - spend a few k each month on one and a few k on the other for the next month?

3) Lastly, do charge cards also help increase a credit score - or should I stick to using the credit cards to do this?

Thanks

reclusive46

Charge cards help as just as much and they don't normally go into your credit utilisation either, so they can be better. Obviously you will have to pay the Amex in full every month. Its no better if you leave a balance on a card. You might as well pay it off in full.